Service Parts Manufacturer

With about 33,000 SKUs in a 156,000 sq. ft. DC, the client makes same day shipments to customers ...

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With about 33,000 SKUs in a 156,000 sq. ft. DC, the client makes same day shipments to customers. However, space was very tight, causing lower throughput and productivity. An Operational Audit identified opportunities for improving the layout, slotting, storage techniques, and processes, and these improvements allowed using the current space for the next 3 years. With some additional changes in the operation, the facility will support the operation for 5 years. Using the existing space will save the client about $720,000 in space costs in Year 1. The client’s return on investment for the consulting fees for the Operational Audit will be about 2,700%.